According to the latest analysis from E2 (Environmental Entrepreneurs) and the Clean Economy Tracker, the US clean energy sector saw another blow this September, with companies calling off or downsizing large-scale projects worth nearly $1.6 billion. The total cost of the projects cancelled in the private sector in 2025 amounted to $24 billion, as per the report.
The private-sector cancellations have impacted battery, storage, and electric vehicle (EV) manufacturing in Kansas, Michigan, North Carolina, and Tennessee. These losses are in addition to the US Department of Energy's recent withdrawal of $8 billion in funding for over 200 public-sector projects nationwide.
In total, about 3,000 workers lost their jobs due to cancellations and scale-backs in September, bringing the total number of job losses tied to abandoned clean energy projects this year to 21,000.
Many of the cancellations came from automakers adjusting their EV production plans. For instance, General Motors scaled back 2 EV production lines in Tennessee and Kansas, impacting roughly 1,600 workers. Meanwhile, sodium-ion battery startup Natron Energy announced that it would cease operations altogether – closing a $40 million plant in Michigan that had 150 workers, and shelving plans for a $1.4 billion facility in North Carolina that would have employed around 1,000 people.
Speaking about the scenario, E2 Communications Director Michael Timberlake said, “The loss of these projects isn’t just a setback for clean energy - it’s a setback for America’s workers and competitiveness. For every cancelled factory or downsized plant, behind the scenes many more projects are not being announced at all as more capital flees and businesses look overseas to invest instead. That means fewer paychecks, less local investment, and fewer opportunities for US workers to lead in the industries of the future. While other nations are racing ahead to capture the clean energy economy, these cancellations leave American communities falling further behind.”
However, amid the pullback, new investments worth $542 million were announced in September. These include EV and solar parts manufacturing facilities, and grid infrastructure projects designed to support the energy demands of expanding AI data centers. Collectively, these ventures are expected to create about 985 new permanent jobs.
Overall, E2 has tracked 415 major clean energy projects launched since the tax credits took effect, spanning 42 states and Puerto Rico. Together, companies have pledged roughly $135 billion in new investments and committed to hiring 125,000 permanent workers.
